Starting your entrepreneurial journey in Michigan, remember you should begin by registering your business with the Secretary of State to establish a legal entity. Once that’s done, don’t forget to secure your Employer Identification Number if it’s needed.
The paperwork, permits, and license are involved when you open a business, and you have to follow the state rules too, which can be overwhelming, so here’s full guidance on business registration and getting an EIN for your business.
Register your Business In Michigan
When you are ready to open your business after conducting market research and securing initial funding, be aware that there are numerous legal procedures related to taxes, business laws, and regulations.
The first step is to get your business a legal entity, which will help in further processes. Your business will need to be registered with the US state where you have established your business.
In Michigan, business registration is managed by the “Secretary of State Department of Licensing and Regulatory Affairs.” If you have selected your business structure, business name, and have a business plan, you can move to register your business as a legal entity.
Remember, when you register your business with LARA, it may charge you some fees depending on the business structure, such as LLC fees can begin with $50 to $500.
How to register your company with the LARA in Michigan?
Before you move to register your business in Michigan with LARA, you should confirm if the business entity name you have chosen is already taken or not. You can check it on the LARA portal and search for your selected name in the entity name section.
Once you are confirmed of a unique name and have all the other business details with you can begin with online business registration at the Michigan LARA in the following steps:
- You can directly go to the Michigan Business Registry Portal
- Next, if you don’t already have a MiLogin Business account, create one.
- Once you have the User ID and password, you can log into the portal.
- Next, begin your Business registration by first selecting the business structure, entering business details, and other information.
- You should enter your information, other valid information like tax ID number, etc, and complete the registration.
Once you register your business, you will receive the certificate for your business being established as a legal entity.
Why will you need the Tax ID (EIN) number?
It’s not important that every business entity needs an EIN; for instance, sole proprietorships or single-member LLCs do not require an EIN, as their tax is covered under the individual tax return of the owner.
However, some situations require you to have the federal EIN, which you should be aware of to ensure your business runs smoothly, such as:
- Hiring employees and managing their payroll taxes or withholding taxes from wages
- Paying the excise duties, alcohol, or other taxes
- Paying federal or state income taxes (for state, you may have to obtain the state tax ID as well)
- Operating the business, like opening a business bank account, creating a retirement plan, and others
- Helpful in acquiring the business license or other permits as per the business’s requirements.
So, if you have any of these situations, your next step should be applying for the federal EIN from the IRS.
How to acquire the Tax ID (EIN) number?
The IRS allows businesses to obtain an EIN online for free within a few hours through an online tool, where you will need the following:
- ITIN/ SSN of the Responsible party
- Business Entity type
- Signed authorization from the responsible party if you are applying on behalf of your client.
You can complete the EIN application online for your business in Michigan in the following steps:
- First, go to the EIN assistant link and move to the EIN application.
- Next, select your business entity type, enter your business details, like business name, structure, location, zip code, etc.
- Then, for authentication, input the responsible party’s SSN/ITIN along with the other information.
- Once you have entered all the details, check them once and then click the Submit button to complete your EIN application.
After you file your EIN application, the IRS will validate the details, and if everything is correct, you can expect to receive the EIN online within a few hours or in 24 hours.
However, if you can’t access the online tool, you can also download the EIN application form SS-4 and mail it to EIN Operations, Cincinnati, OH 45999, or fax it to 855-641-6935.
Making your business a legal entity and ensuring it meets the tax responsibilities are essential steps to set your business up for success and access the business credits or permits.
